Hong Kong shares extend losses to 4-week low, China flat

* Hong Kong turnover lowest in about a month as investors
remain cautious on China recovery

* Lenovo extends gains after a slew of price target upgrades

By Yimou Lee

HONG KONG, May 24 (Reuters) - Hong Kong shares extended
losses to fall to their lowest in a month on Friday with the
property sector hurt by worries of a slowdown in the Chinese
economy.

At midday, the Hang Seng Index slipped 0.2 percent to
22,624.2 points, the lowest level since April 25. The China
Enterprises Index of the top Chinese listings in Hong
Kong fell 0.3 percent. On the week, they were down 2 and 2.8
percent, respectively.

The CSI300 was flat, while the Shanghai Composite
Index rose 0.1 percent at 2,277.8 points, up from its
biggest slump in a month on Thursday. They are down 0.3 and 0.2
percent on the week.

"The market stabilized today, but investors remained quite
cautious," said Ben Kwong, chief operating officer at securities
house KGI Asia. "They don't have any motivation to buy at this
moment," he said.

Midday turnover in Hong Kong was at its lowest in about a
month.

China's flash HSBC Purchasing Managers' Index (PMI) shrank
for the first time in seven months in May as new orders fell,
slipping under the 50-point level demarcating expansion from
contraction.

The survey prompted speculation that Beijing may launch more
stimulus to put economic recovery on a firmer scale.

But sources close to the government said China's plan to
spend $6.5 trillion on urbanisation to bolster the economy is
running into snags, as top leaders fear another spending binge
could push up local debt levels and inflate a property bubble.

Chinese property developers listed in the mainland were
broadly weak. China Vanke fell 1.3 percent in
Shenzhen after testing its highest since Feb. 5 on Thursday.

Lenovo Group Ltd rose as much as 5.3 percent to
HK$7.69, the highest since April 2, helped by a slew of price
target upgrades by brokerages after the Chinese PC marker
reported a forecast-beating quarterly profit.

Analysts said the company was on the right track
diversifying into mobile gadgets though it faced stiff
competition from existing players such as Samsung Electronics Co
Ltd and Apple Inc. Lenovo's Chairman and
CEO said on Thursday it planned to ship 50 million smartphones
and 10 million tablet PCs, up from 30 million and two million
respectively during the previous fiscal year.

Shares in China Huiyuan Juice Group Ltd fell 5.2
percent after the company said it would buy a fruit juice
concentrates supplier from controlling shareholder China Hui
Yuan Juice Holdings Co Ltd for HK$4.9 billion ($631.17 million)
to secure key raw materials and generate new revenues.